MIRA INFORM REPORT

 

 

Report No. :

324195

Report Date :

25.05.2015

 

IDENTIFICATION DETAILS

 

Name :

HIBINO CORPORATION

 

 

Registered Office :

3-5-14 Konan Minatoku Tokyo 108-0075

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

November 1964

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Imports and wholesales audiovisual equipment & systems: marketing (36%): video products (10%), concerts & events (52%), others (2%). 

 

 

No. of Employees :

678

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

Yen 333.3 Million

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

JAPAN - ECONOMIC OVERVIEW

 

In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become heavily dependent on imported raw materials and fuels. A small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Modest economic growth continued after 2000, but the economy has fallen into recession four times since 2008. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan into recession. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake and the ensuing tsunami in March disrupted manufacturing. A sales tax increase caused the economy to contract during the 2nd and 3rd quarters of 2014. The economy has largely recovered in the three years since the disaster, but reconstruction in the Tohoku region has been uneven due to labor shortages. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2014 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. The government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which amounts to more than 240% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by 2015, although the government in 2014 decided to postpone the final phase of the increase until 2017 to give the economy time to recover from the 2014 increase. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy.

 

 

Source : CIA

Company name

 

HIBINO CORPORATION

 

REGD NAME:   Hibino KK

 

 

address

 

MAIN OFFICE:  3-5-14 Konan Minatoku Tokyo 108-0075 JAPAN

                                    Tel: 03-3740-4391     Fax: 03-3740-4390

 

                        *.. The is its B Bldg, where the Pro Audio Sales Div is located

 

URL:                 http://www.hibino.co.jp/

E-Mail address:            info@hibino.co.jp

 

 

ACTIVITIES

 

Import, wholesale of professional audiovisual equipment & systems

 

 

BRANCHES

 

Tokyo (2), Suita (Osaka), Sapporo, Nagoya, Fukuoka, other (Tot 8)

 

 

CHIEF EXEC

 

TERUHISA HIBINO, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 19,220 M

PAYMENTSNO COMPLAINTS    CAPITAL           YEN 1,748 M

TREND STEADY                       WORTH            Yen 5,069 M

STARTED         1984                             EMPLOYES      678

 

COMMENT:          IMPORTER AND WHOLESALER SPECIALIZING IN PROFESSIONAL AUDIOVISUAL SYSTEMS & EQUIPMENT. 

FINANCIAL SITUATION CONSIDRED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

                        MAX CREDIT LIMIT: YEN 333.3 MILLION, 30 DAYS NORMAL TERMS.

 

                                             Unit: In Million Yen

                        Forecast (or estimated) figures for 31/03/2016 fiscal term

 

 

HIGHLIGHTS

 

The subject company was established originally in 1956 by Hiroaki Hibino, on his account, for repairing TV sets and related apparatus.  Teruhisa is his son, who took the pres office in Jun 2002.  Incorporated in 1964, advanced into import and wholesale of professional audiovisual equipment & systems, followed by later development of designing, planning, installation, operations of various trade events, converts. Offering rental of the related equipment.  Has a strong foothold in the convert and trade events operating fields.  Strength in import and sale of the equipment & systems from Europe, USA, other.  Operates 6 independent intra-company Divisions: Hibino pro audio sales Div; Hibino chromatek Div; Hibino sound Div; Hibino visual Div; Hibino produce Div and Hibino GMC Hibino Group Management Center (see OPERATION).  It also offers event consulting & production.  Clients include NHK (Japan’s national broadcasting station), TV stations, AD agencies, concert operators, other.  The subject obtained a sole agency agreement for importing audiovisual equipment from Dbx (USA).  Listed on the JASDAQ in Feb 2006.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 19,220 million, a 9% up from Yen 17,670 million in the previous term.  The recurring profit was posted at Yen 1,350 million and the net profit at Yen 755 million, respectively, compared with Yen 1,143 million recurring profit and Yen 651 million net losses, respectively, a year ago. 

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 1,500 million and the net profit at Yen 900 million, respectively, on a 27.5% rise in turnover, to Yen 24,500 million. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 333.3 million, on 30 days normal terms.

 

 

REGISTRATION

 

            Date Registered:  Nov 1964

            Legal Status:     Limited Company (Kabushiki Kaisha)

            Authorized:      17 million shared

            Issued:               5,115,441 shares

            Sum:                  Yen 1,748 million

           

Major shareholders (%): Hibino Ltd (29.2), Teruhisa Hibino (10.0), Employees’ S/Holding Assn (6.5), Japan Trustee Services T (2.9), Company’s Treasury Stock (2.4), Hiroaki Hibino (2.4), Sumiko Hibino (2.2), Nippon Life Ins (2.0), Nomura Holdings (1.9), MUFG (1.9); foreign owners (4.9)

 

            No. of shareholders: 2,037

 

            Listed on the S/Exchange (s) of: JASDAQ (listed Feb/2006)

 

Managements: Hiroaki Hibino, ch; Teruhisa Hibino, pres & CEO; Sachio Nomaki, s/mgn dir; v pres;; Ryoichi Hashimoto, s/mgn dir; Junichi Imokawa, mgn dir; Chikayuki Hisano, mgn dir; Satoshi Yoshimatsu, mgn dir; Sumio Fukazawa, mgn dir

 

            Nothing detrimental is known as to the commercial morality of executives.

 

Related companies: Hibino International Corp, Studer Japan – Broadcast Ltd, Hibino Media Technical Cooperation, other (Tot 8 consolidated subsidiaries)

 

 

OPERATION

 

Activities: Imports and wholesales audiovisual equipment & systems: marketing (36%): video products (10%), concerts & events (52%), others (2%). 

           

(Intra-company operating divisions)

 

             Pro Audio Sales Division: importing and selling audio and communication equipment for professionals from all over the world;

Chromatek Division: LED display system sales, visual equipment sales, administration, overseas sales, imports & exports, technical assistance & R&D;

Sound Division: rental and operation of audio systems for rock & pop concerts and other events, including project preparation;

Visual Division: based in Tokyo, Nagoya and Osaka, offers total support, from planning thru operation, of video & audio systems for professionals, such as presentation display systems, satellite communication systems & transportable and fixed Astrovision; post-production (providing video editing, audio sweetening & DVD authoring services); recording live performances, utilizing mobile recording studio and dubbing with Pro Tools;

Produce Division: event consulting produce, information & technology, techno-staff dispatch, other;

GMC Hibino Group Management Center: management & planning, general affairs, personal affairs, accounting & financing, import & export management, computer system, other.

 

 

Clients: [Broadcasting companies, event operators] Tokyo Media Communications, Asahi Broadcasts, Kansai TV, Fuji TV, NHK, Dentsu Tech, Ikegami Tsushinki, On The Line, Excel Video, Victor Arks, other.

            No. of accounts: 500

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Harman International, Hibino Inter Sound, Yamaha Music Japan, Tom Communication Ind, AKB (Austria),Amcron (USA), BSS Audio (UK), DBX (USA), JBL Professional (USA), Lexicon Pro (USA), Soundcraft (UK), other

 

Payment record: No Complaints

 

Location: Business area in Tokyo.  Office premises at the caption address are leased and maintained satisfactorily.

 

 

            Bank References:

                        Mizuho Bank (Shiba)

                        MUFG (Tamachi)

                        Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

19,220

17,670

　

  Cost of Sales

12,742

11,809

　

      GROSS PROFIT

6,478

5,860

　

  Selling & Adm Costs

5,220

4,569

　

      OPERATING PROFIT

1,257

1,290

　

  Non-Operating P/L

93

-137

　

      RECURRING PROFIT

1,350

1,143

　

      NET PROFIT

755

651

BALANCE SHEET

　

　

  Cash

　

1,601

1,651

　

  Receivables

4,610

3,953

　

  Inventory

2,518

1,590

　

  Securities, Marketable

　

　

　

  Other Current Assets

686

920

　

      TOTAL CURRENT ASSETS

9,415

8,114

　

  Property & Equipment

4,958

4,670

　

  Intangibles

183

189

　

  Investments, Other Fixed Assets

1,592

1,392

　

      TOTAL ASSETS

16,148

14,365

　

  Payables

1,301

1,102

　

  Short-Term Bank Loans

2,530

1,538

　

　

　

　

　

  Other Current Liabs

3,312

3,151

　

      TOTAL CURRENT LIABS

7,143

5,791

　

  Debentures

　

　

　

  Long-Term Bank Loans

1,800

1,910

　

  Reserve for Retirement Allw

1,302

880

　

  Other Debts

　

834

1,116

　

      TOTAL LIABILITIES

11,079

9,697

　

      MINORITY INTERESTS

　

　

Common stock

1,748

1,743

　

Additional paid-in capital

2,101

2,096

　

Retained earnings

1,238

920

　

Evaluation p/l on investments/securities

22

12

　

Others

37

(28)

　

Treasury stock, at cost

(77)

(76)

　

      TOTAL S/HOLDERS` EQUITY

5,069

4,667

　

      TOTAL EQUITIES

16,148

14,365

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

1,389

2,173

　

Cash Flows from Investment Activities

-1,684

-1,920

　

Cash Flows from Financing Activities

192

-46

　

Cash, Bank Deposits at the Term End

　

1,601

1,647

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

5,069

4,667

　

Current Ratio (%)

131.81

140.11

　

Net Worth Ratio (%)

31.39

32.49

　

Recurring Profit Ratio (%)

7.02

6.47

　

Net Profit Ratio (%)

3.93

3.68

　

　

Return On Equity (%)

14.89

13.95

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.57

UK Pound

1

Rs.99.67

Euro

1

Rs.70.83

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

VNT

 

               

RATING EXPLANATIONS

 

RATING

STATUS

PROPOSED CREDIT LINE

 

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

 

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

 

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

 

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

 

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

 

--

NB

New Business

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.